Is Unlimited PTO Really Better? What Research (and Employees) Say

This blog is part of our Truth vs. Trend Series.

As flexibility has become a top priority for many employers, unlimited paid time off (PTO) has gained popularity. Often framed as a modern well-being-focused benefit, it promises autonomy, trust, and improved work-life balance. In actuality, the policy does not always work as intended. As the challenges have become clearer, some employers are beginning to rethink whether unlimited PTO truly supports the outcomes they are aiming for.

What is unlimited PTO?

Unlimited PTO is a leave policy that allows employees to take time off as needed, typically with manager approval, as long as deadlines and responsibilities are met. According to Wellhub, the goal of unlimited PTO is to improve employees’ work-life balance and overall well-being, as well as help prevent burnout, by giving them discretion to decide when and how much time off they need.

Why does time off matter?

Society has normalized constant productivity and overwork, sometimes making it difficult for many employees to feel comfortable taking time off. However, when it comes to health and well-being, Psychology Today points out that there are clear benefits, including:

• Stress and burnout prevention
• Increased clarity around workplace stressors
• Improved mental and physical well-being
• Better sleep
• Increased happiness.
  

According to WorldatWork, 78% of employees surveyed do not use all their PTO, while 75% say they wish they could take more time off. Similarly, a 2024 survey report from the International Foundation of Employee Benefit Plans found that more than half of employees cite heavy workloads as a primary reason for not taking time off, reinforcing the trends seen in the WorldatWork data.

What are the benefits of unlimited PTO?

The International Foundation identifies the following top five reasons employers offer PTO:

• Flexibility
• Employee empowerment
• Equality in time off
• Reduced administrative burden
• Improved employee engagement and retention.

Employers that offer unlimited PTO may view the policy as a way to further support these goals and enhance employee well-being. With these priorities driving implementation, unlimited PTO has the potential to deliver meaningful benefits, such as:

• Attracting top talent and retaining employees. PTO is an important perk to many employees, and they value this when choosing or staying with an employer.
• Improving work-life balance. Thoughtful use of PTO allows employees to take time off when they need it most, supporting greater balance.
• Increasing productivity. Taking time off helps employees recharge, avoid burnout, and return focused.
• Boosting morale and improving company culture. Employees experience more autonomy by taking ownership of their work and schedules, creating a more supportive environment.
  

What are the challenges of unlimited PTO?

While unlimited PTO may seem like an ideal solution for addressing employee concerns about things such as work-life balance, in reality, it sometimes falls short. Here are some common challenges associated with unlimited PTO:

• Confusion and inconsistency. If an unlimited PTO policy lacks clear guidelines, some employees may be hesitant to use their time off. On the other hand, without clear expectations, it could also lead to inconsistencies in how managers approve and encourage PTO across the organization.
• Uneven PTO usage. Some employees may take less time off than they need or want, while others may take more, creating imbalances and reinforcing confusion about expectations.
• The culture of overwork is reinforced. Even with unlimited PTO, employees may still be expected to complete the same amount of work in less time due to understaffing, or a possible uneven distribution in work when others take time off. In fact, research shows that 55% of employees respond to emails or messages during their time off.
• Organizational risks. In addition to the possibility of uneven workload distribution and burnout risk, Brightmine notes that unlimited PTO may also raise compliance issues in some states.
  

What are the best practices for unlimited PTO?

To create an unlimited PTO policy that supports employee well-being and workplace productivity, consider these ideas:

• Make it clear. Establish clear guidelines and expectations for requesting time off, including any minimum or maximum limits and how work will be managed in employees’ absence. Clear policies help create a supportive environment where employees feel comfortable taking the time they need.
• Mandate a minimum number of days off. Requiring a minimum amount of time off can help normalize rest, encourage balance, and reinforce the importance of employee well-being.
• Train leaders. Ensure leaders are aligned through consistent training on the policy so that expectations are fairly applied and employees feel safe requesting time off.
• Protect time off. Encourage employees to fully disconnect while they are away by setting expectations that they are not required to monitor emails or complete work.
• Reinvest cost savings. To avoid the perception that unlimited PTO exists primarily as a cost-saving measure, consider redirecting the potential savings to other benefits such as student loan assistance, 401(k) or HSA contributions, charitable giving, or even cash, if feasible for the organization. These options can support employee well-being in other ways.

So, is unlimited PTO really better?

Unlimited PTO is not inherently good or bad. The success of an unlimited PTO policy may boil down to structure, culture, leadership, and how thoughtfully it's implemented.  

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  Ashton Sholund

  Wellness Content and Information Specialist

  Wellness Alliance

  As a Wellness Content and Information Specialist at the Wellness Alliance, Ashton is passionate about supporting employee well-being and advancing workplace wellness initiatives. With over 12 years of experience as a certified health coach, Ashton has worked extensively in the worksite wellness sector, empowering individuals and organizations to prioritize health and create sustainable wellness strategies. Outside of work, she enjoys group exercise classes and participating in a monthly book club to nurture both her physical and mental well-being.